Dow Jones 11111.48 +60.43 1:10 pm PDT, July 25, 2006 NASDAQ 2073.20 +11.36 For info, visit access.smallcapnetwork.com S & P 500 1269.39 +8.48 Change your subscription status here Russell 2000 697.17 +6.41 VOLUME 06: ISSUE 57 The One-Two Punch On Friday we issued our initial profile on an up-and-coming company called Ckrush (OTCBB: CKRH). As it turns out, it was as exciting to our readers as it was to us. Ckrush truly is a great company as much as it is a compelling investment opportunity. (If you missed the profile edition, be sure to review it by clicking here.) Now that we all have an overview of who and what the company is, we're equally excited to be able to complete the one-two punch (today is the 'two') by drilling-down into its newest venture - LiveMansion.com. In simplest terms, this website is going to be a huge hit for Ckrush. LiveMansion is an online community where users can make and chat with friends, promote themselves or their business, and most importantly, participate in the social network meshed together by the internet. If the premise sounds familiar, it should...it's the same idea utilized by the popular MySpace web community. And as you may know by now, the owners of MySpace turned that quirky little website into a multi-million dollar windfall, thanks to a major acquisition (more on that below). Well, we've seen the LiveMansion site, and quite frankly, it's a heck of a lot cooler than MySpace. Even if LiveMansion achieves only a fraction of the success MySpace did, it would still be a huge victory for Ckrush as well as its shareholders. Even more exciting is Ckrush's big news being released along with this detailed profile of the website. Earlier today, to officially launch LiveMansion.com, Ckrush announced an initiative to create a full-length digital feature - with LiveMansion members effectively calling the shots. It's appropriately titled "LiveMansion: The Movie", and will be the first digitally-made movie of this magnitude, where the online community will choose the director, cast members, and even be part of the film themselves. Crazy? Not at all. As we discussed on Friday, the use of the internet is not just for data searching anymore. Ckrush's target audience - 18 to 44 year olds - are using the web more and more as a social outlet, an entertainment portal, and a platform from which they can express themselves in just about any way they choose. Or, in very basic terms, the internet is becoming the preferred form of entertainment, topping television, live sports, and other outlets. And in the quest to find and retain an audience, Ckrush is the crème of the crop. That's why we're once again recommending Ckrush shares - the sky truly will be the limit now that the website is starting to exponentially attract members.   The Plan OK, who doesn't want to be in a movie? Better yet, who doesn't want to sit in the director's chair? When we said Ckrush is focused on fun in Friday's newsletter, we weren't kidding - Ckrush really does have its finger on the pulse of what all those gen-Xer's and gen-Yer's want. The chance to be involved in the filming process alone is going to be fun, to say the least. However, Ckrush is backing up the idea with a nice little pot of gold at the end of the rainbow - $100,000 worth of cash prizes to be awarded to viewers of the movie during its development process. To actually qualify for awards, though, LiveMansion participants will also need to browse the website once clues are garnered from the film itself. It's a brilliant move from Ckrush - offering the chance at prizes in exchange for web traffic and participation in the community. We don't think there will be any problem putting LiveMansion on the proverbial internet map with that kind of money being awarded. Like we said earlier, we're looking for the number of members to grow like wildfire. While community participants will be competing for the cash, Ckrush will be collecting what it really hopes to gain from the site...content, and traffic, which should prove to be a heck of a lot more valuable than the $100,000 being offered up as prize money. Along the way, any uploaded movies, whether they make it into the actual full-length feature or not, will still become part of the Ckrush playbook. Once stored on the website, Ckrush and LiveMansion will have plenty of choices about how to turn those other digital assets into revenue. Simultaneously, the cultivation of members will grow - not just in quantity, but also in quality. The filming process is expected to take place over the course of a year, with specific milestones to be celebrated along the way. In that sense, it's been compared to 'American Idol', where viewers not only are entertained, but also involved in the selection process. But, like any TV show, repeat viewers are the key to success. We expect to see LiveMansion community members become more and more interested and attached to the film's completion. It would be akin to the way we all rooted for our favorite castaway to win the million bucks on TV's 'Survivor', and watched it through to the end of the last episode. Once viewers are hooked, they tend to stay hooked...the same will be true on the internet. Equally brilliant is the decision to break the year-long process into segments, so new-comers won't be alienated, and will be able to participate even though they came in halfway through the films creation.   Turning 'Digital' Into 'Dollars' And how does Ckrush make money? Glad you asked. There are two basic ways...one is simple and straight-forward, while the other is a little more two-stepped (but with a heck of a lot of potential). The first way, as we said, is conceptually easy to grasp. If you've been to the site (and we hope you have), then you also saw a few banner ads on the top and sides of each page. Well, those aren't free placements for the advertisers, nor are they randomly selected advertisers. Each time a user loads a new LiveMansion web page, new banners appear. Each of those is an 'impression', for which Ckrush gets paid. It may only be a few cents at a time, but you also have to remember the site could eventually have millions of members, each of whom clicks on different pages within the site several times a day. In that light, the pennies can add up very quickly. Better still, if you actually click on one of those banner ads, Ckrush gets a little bonus for that ever-valuable 'click thru'. Again, it may only be a few cents, but those pennies add up when there are thousand and thousands of page views every day. Oh, and for what it's worth, Citibank, the banking face of Citigroup Inc. (NYSE: C), was today's primary advertiser on MySpace, verifying that even the biggest of corporations are starting to take these online community sites seriously. The estimated cost to Citibank for today's ad-based sponsorship, according to previous prices quoted by News Corp (NYSE: NWS), was probably somewhere in the $750K to $1 million range. Not bad. The second way to generate revenue - and possibly the way with the most potential - is using LiveMansion members as a list of potential consumers for pretty much anything Ckrush wants to promote. Maybe they'll want to sell DVD's and CD's, or maybe they'll encourage everyone on the list to go check out the most recent feature film. Maybe they'll even send offers from third-parties who have paid Ckrush for a pseudo-endorsement from LiveMansion. The ways in which the list can be turned into revenue are absolutely limitless. By the way, the user list LiveMansion is building is no ordinary list. It's a list of the hottest demographic anybody could ever hope to market to - the 18 to 44 year old crowd. They spend a lot of money...more than any other demographic does. We know we keep coming back to that point about demographics, but trust us - it's a huge deal. Most marketers would love to have a list like that. You see why it's so valuable now? That's why LiveMansion is so intently trying to attract them. You think News Corporation wanted to buy an online community website? It's doubtful, since they can build their own website. They mostly wanted marketing access to all those MySpace members (e.g. Citibank). Getting the picture?   The Opportunity The opportunity really hasn't changed from Friday - Ckrush is still a great company, and LiveMansion is still going to complete the circle and round out the rest of Ckrush's divisions; it will also make the company an even stronger opportunity for shareholders. The only difference between then and now is our chance today to really illustrate why the site makes the stock such a great investment. So, here's the explanation we could only touch on briefly with Friday's write-up... Digital entertainment - which is just the fancy word for internet-based content - is the new media. Television has content and delivery limitations. Theaters have content and delivery limitations. The same goes for most media outlets and related options. The internet, though, is virtually limitless...and effectively free. That's why Ckrush thinks (and we agree) it makes sense to develop the industry and procedures now, and to cultivate a base of participants now. Those companies waiting to see what the internet holds in store for the future of entertainment will be left out in the cold when the future becomes the present. Ckrush is getting their foothold now, through a pretty slick site called LiveMansion.com. Even bigger than that is the premise and potential profit of a true online community. LiveMansion is, as it was designed to be, a place where participants can be more than just participants. LiveMansion is a second-generation online community, where members can virtually meet, play games, promote themselves, as well as learn, interact, participate, and contribute. Television could never be as interactive as LiveMansion.com already is. A sense of community is everything when it comes to the internet, which is exactly why we again recommend Ckrush shares to you. Ckrush has virtually aced the idea of social networking over the internet. And, as we've already examined, there's money to be made from having a large list of self-presented consumers. If it's not through direct advertising to the list, then at least LiveMansion will be able to generate revenue through the banner ads and promotions targeting that highly important demographic the website draws. As for shareholder opportunity, we'll just throw out this reminder we mentioned earlier - News Corp is buying the parent company of MySpace, Intermix Media (AMEX: MIX), for $580 million. The deal includes myspace.com and about 30 other smaller sites, but MySpace is the core business of all those sites. While we applaud what MySpace is, quite frankly, it doesn't hold a candle to all the features included with LiveMansion.com. By the way, the 'new' MySpace, once officially owned by News Corp, will become part of the interactive media unit of Fox. So, what was once hailed as a quirky but interesting site is now being fully legitimized by rubbing elbows with a couple of major media names. Could LiveMansion be the next big acquisition? Never say never. This isn't to say LiveMansion will be bought by another company...or even that Ckrush is looking to sell it once it's developed. Maybe they will later. Maybe not. It doesn't matter. The point to keep in mind here is how online communities are for real...real enough to get the attention (and dollars) from some pillars of the mainstream media. You think News Corp has $580 million dollars to waste? Hardly. They see the kind of potential bottom line an online community can generate...the same kind of online community Ckrush is building. The thing is, when it comes to social networking on the web, no other site even holds a candle to Ckrush's LiveMansion.com. That's why we once again recommend buying a stake in the company now, since buying shares later may be too late. The press release...   Ckrush Greenlights 'LiveMansion: The Movie,' First-Ever Major Feature Film to be Produced with a Social Networking Community Breakthrough Project Gives Ckrush First-Mover Position in High-Growth Digital Community Entertainment Space NEW YORK--(BUSINESS WIRE)-July 25, 2006--Ckrush, Inc. (OTCBB: CKRH), a cutting-edge media group capitalizing on the convergence of entertainment and digital technologies, has announced the launch of "LiveMansion: The Movie," the Company's first major initiative to build digital asset value through LiveMansion.com, Ckrush's recently launched online community. The movie will be the first to be produced online by a social networking community. Members of Ckrush Digital's LiveMansion.com will play major decision-making roles in the project, including casting the film and choosing the director. "LiveMansion: The Movie" marks the first time major production decisions on a film have been made through an online social network and the first time a film will be cast and the director chosen from the members of an online community "Social networking has become a powerful collective force in today's world," said Jeremy Dallow, President of Ckrush Inc. "'LiveMansion: The Movie' takes this phenomenon in a new direction, harnessing the participatory nature of the web in a whole new way. The LiveMansion project moves beyond the cinema, offering a comprehensive digital experience and hopefully generating a robust audience even before the movie is filmed." Mr. Dallow added, "We believe "LiveMansion: The Movie" is the first film concept to truly empower an online community. Ckrush is committed to making highly entertaining and commercially successful feature films and we feel that the LiveMansion community will be a great producing partner and source for creative talent." Ckrush's movie production business model is designed to allow the Company to develop compelling entertainment content efficiently while maximizing potential revenue growth through its digital assets. "It's a participation based process that is designed to fuel itself, establishing a long-term user base that will continue to draw in new members," said Mr. Dallow. The movie production begins on LiveMansion.com, a fully interactive social networking site with unique user-personalized home pages where members can edit profiles, post pictures and blogs, receive mail and keep a detailed list of friends. Beyond the typical social networking sites currently in use, members can create their own virtual mansion with dozens of rooms that explore their interests with other like-minded members, all in real time. The website is the cornerstone for the entire entertainment experience and the engine for generating digital assets that build a long-term community for all of Ckrush's future projects. Members from the LiveMansion.com social community will be virtual producers, voting for the director, the cast, and various other aspects of the movie. Each member will earn "producer points" as they take part in the making of the film. Those who participate the most will be brought to the set and will earn equity in the film, among other benefits. Ckrush is taking the lead in this new multimedia category and intends to stay at the forefront of the industry's paradigm shift towards integrated multi-media. "LiveMansion: The Movie" is the first such project. Ckrush intends to release a series of interrelated movie concepts, web initaitves and promotional campaigns. About Live Mansion.com LiveMansion.com is an advanced multi-media web destination that builds upon the growing strength of online communities and new-era viral marketing. The online social network has introduced a new-economy business model based on "participatory pop culture," creating multiple potential revenue streams. LiveMansion.com members can create their own virtual mansion with dozens of rooms, allowing them to explore their interests and socialize with other like-minded members, all in real time. The website is the cornerstone for a holistic entertainment experience and the engine for generating digital assets and building a long-term community. For more information, visit www.LiveMansion.com. About Ckrush, Inc. Ckrush, Inc. is a cutting edge entertainment and digital media group capitalizing on the global convergence of the traditional entertainment industry and the "participatory pop culture" revolution of online communities and digital technology. The Company produces feature films, sports programs and other content that target young adults, a highly-coveted entertainment industry demographic comprised of 70 million-plus consumers with an estimated spending power in excess of $200 billion annually. Ckrush feature films slated to be released in 2006 include, "Beer League," starring Artie Lange, "TV the Movie," starring Steve O and Wee Man of "Jackass" fame; and National Lampoon's "Pledge This," starring Paris Hilton. Ckrush also - promotes and distributes televised sports events and other programming through pay-per-view, video-on-demand and retail channels. For investor-specific information about Ckrush, Inc., including recent news and stock price data, please visit http://www.trilogy-capital.com/tcp/ckrush/quote.html. For an investor Fact Sheet, please visit http://www.trilogy-capital.com/tcp/ckrush/factsheet.html. For General Investor Information, please visit http://www.trilogy-capital.com/tcp/ckrush/. For additional information, visit http://www.ckrush.net. Forward-Looking Statements This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors; acquisitions of dispositions of business assets; and the potential impact of future decisions by management. More detailed information about these factors may be found in filings by Ckrush, Inc. with the Securities and Exchange Commission. Ckrush, Inc. is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise. Contact: Ckrush, Inc. Jeremy Dallow, 212-564-1111 or Trilogy Capital Partners, Inc. Paul Karon, 800-592-6061   We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Editor@smallcapnetwork.com If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 4653 Carmel Mtn Rd Suite 308 #402 San Diego, CA 92130 The Blog Is Back We've said it before, but we'll say it again...if you're not reading the blog, then you're missing some of our best stuff. Get behind the scenes and into our heads. Check out what we added just this week (and it's only Tuesday). Remember, not everything makes it into the e-mail version of our newsletter, but that doesn't mean it's not worth reading.   Novelos Therapeutics Raises Its Visibility Factor One of the biggest challenges our featured small cap companies face (or any small cap company, for that matter) is not corporate performance, but in getting the attention of the investing community. So, when we learned Novelos' (OTCBB: NVLT) corporate profile now appears in Standard and Poor's listing of corporate records, we were ecstatic. This is something of a milestone for the company, and should go far in putting Novelos' name - and shares - on the map of the investing world. Don't hear us wrong - Novelos is not primed to instantaneously become the next Microsoft or Dell...even those companies didn't break into the large cap world overnight. We're just saying the S&P listing is yet another feather in NVLT's visibility cap. Why? Just think of it as another set of potential investors who will be exposed to all the great work Novelos is doing. Or to be more direct, it makes it a lot more likely that your shares will move higher because demand for them is growing. For more, and a recent chart, click here.   Clearly Canadian Is Now Virtually Debt Free Clearly Canadian (OTCBB: CCBEF) has just taken another major step towards putting its destiny in its own hands. The company had been in litigation proceedings since 1997 over a disputed debt incurred by subsidiary Blue Mountain Springs LTD. The former owners of Blue Mountain said Clearly Canadian was responsible for a debt owed by Blue Mountain when Blue Mountain was acquired by Clearly Canadian. The two parties have come to an agreement over the debt, with part of it being paid in cash, and part of it being paid with shares and warrants. The exciting part for current shareholders is not so much how the proverbial monkey has been taken off of Clearly's back, but rather that the debt has been taken off the books. As a result of the settlement, Clearly Canadian is essentially debt free...and has a pretty large cash position to boot. While the dissolved debt won't affect cash flows or the income statement, it will significantly enhance the balance sheet. And from a less technical perspective, the company will now be able to focus more on sales and marketing without needing to worry about distractions like this lawsuit. To read more of our thoughts as well as a full copy of the press release, click here.   Experienced Veteran Joins On The Go as Sales Director On The Go Technologies Group (OTCBB: OGHC) has a new sales director. John Pietrocupa , formerly of General Electric's IT division and Compucom, is now On The Go's sales director of the enterprise division. The enterprise division is focused on international banking, hotel, pharmaceutical, insurance, and automotive sectors. In simplest terms, that's right up John's alley. We think it's a good fit, and should help enhance On The Go's bottom line. By the way, we'll also remind you On The Go is on a sales roll. The company has shipped out some major orders in the last several weeks, which could lead to some pretty surprising results (in a good way) when quarterly earnings are released. Be sure to check out OGHC's recent blog entries as a reminder of the big orders the company has landed in just the last couple of months. Now, with a former sales executive from a blue-chip company stepping in, we're expecting revenue to keep growing exponentially. Click here for more, and a recent chart. Subscribe Information is power and timely information is profitable. Become informed and profit from SmallCapDigest Profiles and Trading Alerts by becoming a Preferred Member today. 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Click Here or go to http://access.smallcapnetwork.com/compensation_disclosure.html to view our compensation on every company we have ever covered, or visit the following web address: http://www.smallnetwork.net/profile_disclosure.html for our full profiles and http://access.smallcapnetwork.com/short_term_alerts.html for Trading Alerts. Ckrush, Inc. has paid TGR Group LLC a fee of $30,000 for coverage of the company. In addition, TGR Group LLC has been granted 500,000 restricted warrants convertible into common stock at $.25 by Trilogy Capital Partners. In addition, TGR Group LLC has also been granted 750,000 free trading warrants convertible into common stock at $.25 by a non-affiliated third party shareholder for coverage of Ckrush, Inc. TGR Group LLC has been paid a fee of $25,000 and 100,000 shares of newly issued restricted stock by Novelos for coverage of the Company. The aforementioned shares have become free trading under Rule 144. 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